In this digital world, doing business online is a prominent thought for any business. Digitalization has skyrocketed the market reach for every business organization. Now it is possible for a new company to reach a thousand miles away to a home where a customer is ordering a delivery while paying online. 

Here comes the importance of a merchant account which is often overlooked. A merchant account is the only gateway or payment solution for all businesses. No matter how attractive your business is in the market, without a merchant account, it will not possess any sales. 

Dealing with online transactions is easy from both ends. But do you know that gaining a merchant account is as difficult as seeking a loan from the bank? 


But why?

Well, seeking a merchant account from the bank will need various instances and criteria to follow. They will cancel your request to create a merchant account if you fail to meet their criteria. 

It becomes more difficult when you have a high-risk business with more chargebacks. Here we will provide payment processing solutions for high-risk businesses which have high rates of chargebacks.

What Is A High-Risk Merchant Account?

It is a custom banking solution for unique industries. With these accounts, you will get a more efficient payment processing service.

In this digital world, business diversification is common, and thus more companies are currently looking for custom payment solutions with proper gateways. Well, there are some payment processing solutions for low-risk merchants. 

For instance, you will get PayPal, Stripe, and Square, but these do not provide service to high-risk businesses. 

Well, what is a high-risk business?

Keep reading to understand what categories come under high-risk business.

Which Are Considered High-Risk Businesses?

The landscape of the high-risk industry is not small. But we will provide you with a general idea of the industry. 

However, before considering the industries, you will need to know the proper instances of acknowledging a high-risk industry in the market. 

• Businesses are considered highly risky when they are new in the market. Because when you are new and have not established your business properly, you cannot show an extensive transaction history to the financial institution.
• When a merchant account provider gives you access to a merchant account, they seek a proper chargeback ratio. However, if you do not acknowledge enough transactions within a particular time period, your business is at high risk.
• The CBD, travel, and gambling industry is the type that automatically comes under the high-risk category.
• With a higher rate of fraud and refunds, you might get in the higher risk category.

Well, there are some prominent examples of high-risk industries.

• CBD.
• Adult industry.
• Nutraceuticals.
• Travel industry.
• Firearms.
•Subscription Boxes.

Things To Consider While Looking For A High-Risk Merchant Provider

If you want a high risk merchant account, there will be plenty of options in front of you that generate custom payment solutions. But all are not as effective as you think. Your future finance depends on this decision as you are going to make loads of payment through them.

So, better research is necessary to get the best provider from the market.

Timely Support

Transaction problems are common when there is traffic in the gateway. But the fact sticks to the point of how quickly your merchant account provider is resolving your problem. 

Consider a high risk merchant account that is efficient enough to deal with proactive transaction support.

Hidden Charges

This is annoying for any company to go through hidden charges at the end of a month. 

Closely to the services of the provider and know if there are hidden changes applicable to your services. Consider a transaction service that only cuts the payment processing fee and nothing else.

Up-To-Date Technology

Consider a provider who has acknowledged upfront technology in their business process. In this digital world, security and payment options are important to consider.

An upfront technology will save you from transaction fraud in advance. Make sure they are using anti-fraud tools to give you proper safety.

Customer Support

Good customer support is always desired by people. Now when you are the client, you will also seek good customer support to ensure a better and smooth transition process altogether.

Applying Steps For A High-Risk Merchant Account

Now it's time to look for the steps that will help you to get a merchant account with ease. There is a lot to explore in the digital world, and that starts with the research process. 

Research Properly

Without researching the market, considering a merchant provider is like depending on your luck. Luck is a bad choice when you are chased by risk.

For instance, if you are a CBD merchant, you will need to consider a high-risk CBD merchant provider. So, research the market and select the perfect provider who can mitigate your risks.

Submit An Application

Next, get in touch with their customer service and know their details. Now, it's to submit your application to the particular merchant. For instance, you can consider the existing sales volume and other things that are required according to the provider’s POV.

Check For The Additional Documents

You also need to check out the additional documents that are needed to submit to the provider while applying for the merchant account.

• Social security numbers
• Financial statement
• Articles of incorporation.

Go For A Bank Review

After you submit your documents, it's time to deal with the merchant providers. They will provide you with a banking package that is ideal for you. Review your package and consider if it is suitable.


You will also need to maintain certain stipulations to ensure that you are getting approved with the account. 

• Current Utility Bill.
• COAs (Certificates of Analysis).
• Domain Ownership Proof.
• Tax Permit.

After all, it's time to complete the underwriting process for approvals. Processing your payments is the last part of exposing your payment solutions to consumers. 

Follow the above-mentioned steps and complete your penchant payment solution with ease for your high-risk business.